The crypto industry is buzzing about Hyperliquid's planned issuance of the USDH stablecoin, which has sparked intense competition between various protocols.
New Proposals for USDH
According to Hyperliquid's plan, Sky, formerly known as MakerDAO, has joined the competition for USDH, already managing the USDS and DAI stablecoins, worth around $13 billion. Rune Christensen, one of the founders of Sky, stated: "By using Sky to power USDH, the Hyperliquid community will gain unbeatable advantages that no other stablecoin project can offer."
Market Competition for Stablecoins
In addition to Sky, protocols such as Paxos, Frax, Agora, and Native Markets are also offering competitive terms for USDH support. Paxos has promised to retain 95% of reserved earnings and zero fees for USDC migration, while Agora has pledged 100% of net revenue for HYPE buybacks. Native Markets previously promised a share of the reserve proceeds for Hyperliquid's Assistance Fund, and Frax Finance is oriented towards returning 100% of the treasury profits to users.
Voting and Its Significance
On September 15, 2025, a vote will take place to determine which protocol will gain Hyperliquid's support. This vote will be one of the most closely watched developments in DeFi this year, as the winner will hold significant influence over the stablecoin market.
Hyperliquid's plan for USDH has led to active competition among several protocols, highlighting the growing importance of stablecoins in DeFi.
